Western Woods

By H. A. Roberts

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dustry is approaching the close of 1973 more optimistically than anticipated a few months ago. Although production has dropped, to a point slightly orders have held

Executive Vice President Western Wood

Story at a Glance

More optimism than a few months aoo low inventories indicate irore market stability than earlierthought. R&D on 1x4 studs for non-load bearing walls show promise.

crunch. This traffic is expected to make significant gains in 1974. Increasing production of soda ash from mines in western Wyoming points toward a growth in transportation of this important commodity during the next 12 months.

While gross ton-miles of traffic in 1974 may not exceed the record anticipated for this year, UP is confident that the demand for rail transportation services on its system will keep operations humming at near peak capacity through the first half of1974 and possibly throughout the full year.

"The 37o freight rate increase granted the industry in August was too little and too late to offset the rapidly climbing cost of labor, diesel fuel, track supplies and other materials," said John C. Kenefick, president of the 9.500-mile Western carrier, (pictured at left).

"Considering the rapid climb of these costs, it is imperative that the Interstate Commerce Commission act promptly in approving rate increases to cover these inordinate expenses in L974," the UP chief added.

The rail mode's relatively low pollution posture and its efficient use of energy are key factors in the optimistic view of 1974 and for the long range outlook.

Inventories at mills are generally low with the November level only I7o higher than at the beginning of the year.

Low inventories at both the manufacturing and consuming ends have resulted in stability in the fall months and indicate greater market stability this winter than we anticipated earlier. Although homebuilding activity will be down in 1974, compared with 1972-73, our somewhat optimistic prediction of 1.8 million starts in September is now receiving reinforcement. Several lending forecasters have modified dire predictions they made early this fall in light of some easing in interest rates which many had not expected until sometime in 1974.

below 1972 levels, up since midyear.

Our industry experienced unprecedented production volume in 1972-73. Production in 1972 was up 6Vo over I97l and 1973 production will approach that of 1972 with early

DECEI'BER, 1973

high production now offset with '72 rates at year end.

Research and development sponsored by the industry has extended the utilization of forest resources this year through new design techniques. Architects and engineers have long recognized that wood buildings have been overdesigned.

After extensive study and testing, the industry developed, introduced and promoted the Mod 24 concept in which framing members are spaced on24'' rather than 16 " centers. Mod 24 permits cost savings of $200 for the typical home of 2,000 sq. ft. of floor space. If we assume that homebuilding will reach 2 million starts in a given year, the aggregate saving would approach 9400 million over customary wood construction methods.

In addition, the industry has contracted with the National Assn. of Home Builders for research on 1 x 4 studs for non-load bearing wall framing. Initial results are indeed promising and tests have already demonstrated that I x 4s will meet strength requirements for residential framing.

Growing acceptance of such concepts will have obvious benefits for dealers, consumers and manufacturer